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The Post‐Reform Effectiveness of the New German Start‐Up Subsidy for the Unemployed
Author(s) -
Bellmann Lutz,
Caliendo Marco,
Tübbicke Stefan
Publication year - 2018
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/labr.12126
Subject(s) - subsidy , german , economics , ex ante , labour economics , demographic economics , public economics , macroeconomics , market economy , history , archaeology
The current German start‐up subsidy for unemployed individuals underwent a major reform in 2011 that altered key parameters of the program, leading to ambiguous ex ante predictions on the post‐reform effectiveness of the program, making a new evaluation necessary. In our descriptive analysis, we find that participants after the reform differ significantly from pre‐reform participants in terms of important characteristics and subsequent labor market performance. Our causal analysis reveals positive and sizable treatment effects on the treated regarding employment and income that are larger effects than what was estimated for the pre‐reform program. Potential reasons for this are discussed.